By Donna Kardos Yesalavich
Energy stocks led the market higher Friday, boosted by a rally
in oil prices and an upbeat outlook from Schlumberger.
The Dow Jones Industrial Average (DJI) was up 25 points at
11159.69 in recent trading, helped by a 1.3% gain in Chevron (CVX).
Merck (MRK) was up 5.5% after calming some investor anxiety about
the effect of the U.S. health-care overhaul on its profits, and
American Express (AXP) moved higher by nearly 2.4% after a strong
earnings report late Thursday.
The Standard & Poor's 500-share index (SPX) rose 3 points to
1,212.21.
Investors grew more optimistic about the U.S. economy following
a Commerce Department announcement showing that sales of new homes
in the U.S. posted their largest year-over-year increase in nearly
five years.
Commodity traders grew more optimistic about the outlook for oil
demand, pushing crude futures up $1.28 to $84.98 a barrel in New
York.
Among energy stocks, El Paso (EP) rose 5%. Schlumberger (SLB)
was up 6% after it announced a 28% decline in first-quarter
earnings, but forecast a full-year turnaround. Smith International
(SII), which is due to be acquired by Schlumberger in a deal
pending regulatory approval, was up 7%.
Worries about Greece's finances have kept a lid on the market's
gains all day, but that hasn't been enough to derail the generally
optimistic mood that has pervaded the market lately. Traders
remained focused on the first-quarter earnings season on Wall
Street, which has provided far more pleasant surprises than
bad.
"I think the tone of the markets, moving just a little higher
day by day since the start of the earnings season, is a good
thing," said Brian Belski, chief strategist at Oppenheimer Asset
Management. "Investors are being less reactionary, buying companies
that are showing consistency in their numbers."
The dollar weakened against the euro and Treasurys fell after
Greece Prime Minister George Papandreou formally asked to tap a 45
billion ($59.9 billion) European Union-International Monetary Fund
aid package, after soaring borrowing costs were seen as making it
nearly impossible for the country to meet its funding needs on the
open market. However, investors warned that pressure in the euro
zone is likely to persist given key uncertainties about the rescue
package.
Among stocks to watch, Microsoft (MSFT) declined 1.7%. The
company's quarterly profit rose 35%, largely due to sales of the
latest version of its Windows operating system, but investors grew
concerned over a lower-than-expected figure on total deferred
revenue.
Travelers (TRV) slipped 1% as an improvement in investment
income at the insurer was offset by a spike in catastrophe costs
tied to snowstorms on the U.S. East Coast and the earthquake in
Chile.
The Nasdaq Composite (RIXF) hovered near the flat line, held in
check by a 4.5% decline in Amazon.com (AMZN) after the retailer
said posting strong first-quarter earnings accompanied by cautious
guidance for the current quarter. The Russell 2000 rose 0.5%.
Treasury prices fell. The benchmark 10-year note (UST10Y) was
off 11/32 to yield 3.813%.